Wednesday, May 22, 2013

What students need to learn:

Content

Students should be able to:

Additional Guidance Notes

Current macroeconomic objectives

Identify, outline and evaluate the major current macroeconomic
objectives.

Objectives may include increased economic growth; control of
inflation; a reduction in unemployment; restoration of equilibrium in the
Balance of Payments; making the distribution of income more equal; and
protection of the environment.

Conflicts between objectives

Consider basic conflicts between objectives, such as inflation and unemployment;
or economic growth and sustainability.

Possible trade offs include those between inflation and unemployment;
growth and

sustainability; inflation and equilibrium on the current account of
the Balance of

Payments.

Students should understand the short run Phillips curve, but the long
run and expectations augmentation are not required.